Education, Achievement, and Opportunity Act

Bill Number

H.R. 2097

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-03-14: Referred to the House Committee on Ways and Means.

Last Updated

2025-05-08T19:09:34Z

AI-Generated Summary

Purpose

The "Education, Achievement, and Opportunity Act" (H.R. 2097) aims to provide financial support to families by offering a refundable tax credit for certain education expenses related to elementary and secondary schooling. It recognizes private schools as a supplement to public education and emphasizes parents' rights to choose the best school for their child's needs.

Key Provisions

• Credit Allowance: Eligible taxpayers can claim a refundable credit (meaning it can reduce tax owed to zero and result in a refund) for qualified education expenses paid for each qualifying child. The credit is capped at $10,000 per child per taxable year.
• Qualified Education Expenses:
• Tuition and required fees for enrollment at a qualified educational institution.
• Up to $1,500 in non-tuition expenses, including computers, educational software, books, academic tutoring (by someone other than the parent), special needs services for children with disabilities (as defined under federal special education law), school-provided transportation fees, and academic testing services.
• Excludes non-academic fees like those for sports, uniforms, insurance, or extracurricular activities.
• Income Limitations: The credit phases out for higher earners. It reduces by $50 for every $1,000 (or fraction thereof) that modified adjusted gross income exceeds $150,000 for joint filers or $75,000 for single filers. Modified adjusted gross income includes certain foreign income exclusions.
• Qualifying Child and Institutions:
• A "qualifying child" follows the definition in the tax code for child tax credits (generally, a dependent child under age 17 who meets residency and support tests).
• Qualified institutions include any public, charter, private, parochial (religious-affiliated), or religious school providing elementary or secondary education, regardless of its religious or non-religious nature.
• Adjustments: Expenses are reduced by any tax-free distributions from Coverdell Education Savings Accounts (a type of savings plan for education costs).
• Effective Date: Applies to tax years beginning after the date of enactment.

Significant Changes to Existing Law

• Introduces a new refundable tax credit under Section 36C of the Internal Revenue Code (IRC), added to the list of refundable credits (previously ending at Section 36B for health insurance premiums).
• Expands tax benefits beyond higher education (like college tuition credits) to include K-12 (elementary and secondary) expenses for both public and private schools.
• Makes technical updates to federal law to include this credit in lists of taxable benefits and updates the IRC's table of sections.

Potential Impacts

• On Citizens: Could reduce financial burdens for families sending children to private, charter, or religious schools, or incurring additional costs like tutoring or special needs services. Lower- and middle-income families (under the income thresholds) would benefit most, potentially increasing access to school choice options.
• On Government Agencies: The Internal Revenue Service (IRS) would need to administer the credit, including verifying expenses and income, which may increase processing demands and lead to federal revenue losses from refunds (estimated costs not specified in the bill).
• On International Relations: No direct impacts, as the bill focuses on domestic tax policy for U.S. taxpayers.
• Broader Effects: May encourage more enrollment in non-public schools, indirectly affecting public school funding and enrollment patterns.

Main Stakeholders Affected

• Families and Taxpayers: Parents or guardians with qualifying children in elementary or secondary schools, particularly those choosing private or specialized education.
• Educational Institutions: Public, private, charter, parochial, and religious schools, which could see increased enrollment due to financial incentives for families.
• Government Entities: The IRS for implementation and enforcement; Congress and the Treasury Department for fiscal oversight.
• Children with Disabilities: Families using special needs services may gain targeted support.

Notable Legal, Constitutional, or Political Implications

• Legal: Broadens the scope of refundable tax credits to K-12 education, potentially overlapping with existing programs like state vouchers or federal special education funding, but does not alter those. It ensures neutrality by including all school types without religious discrimination.
• Constitutional: Supports parental rights in education decisions, aligning with interpretations of the U.S. Constitution's emphasis on family autonomy, while avoiding establishment clause issues by treating religious schools equally to secular ones.
• Political: Promotes school choice policies, which could influence debates on education funding equity between public and private sectors, without mandating changes to public school systems.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Smith, Christopher H. [R-NJ-4]

Recent Actions

• 2025-03-14: Referred to the House Committee on Ways and Means.
• 2025-03-14: Introduced in House
• 2025-03-14: Introduced in House

Bill Versions

• Education, Achievement, and Opportunity Act — issued 2025-03-14 — PDF (6 pages)